Best blog I've read in a while. So important, these are real lives when the people making our things face exploitation or forced labour. And it's real, I've seen those conditions in too many China and other factories too many times. They mean poverty, and the unfairness, when western brand execs earn millions (or $100,000s), do not build any respect for westerners,...so then suppliers cheat more,.. and then the brand gets "caught" in a "scandal",..that they caused.
Let's hope the loosening of the tariffs has helped a little, and I get the impression some Chinese suppliers are also looking to other markets.
Hi John what you haven't covered is a whole range of tax avoidance - sorry I mean "legal minimisation" methods available to multinational corporations such as transfer pricing. Instead of just shifting costs so profits miraculously appear in the British Virgin Islands or some such place you move costs so the item landed at US ports is as cheap as possible then bingo you have minimised you tariff!
I'm sure Trumps tariffs have been an absolute boon for the high paid lawyers and accountants in New York and London who do that sort of thing.
What I'm generally seeing is panic and poor decision making. Orders being pulled in, orders delayed, orders at factories reduced to zero. All push suppliers into the forced labor space. I'm not sure companies find themselves in an ethical dilemma because the consequences of these actions are not on their radar. It will be interesting to see how many will be claiming responsible sourcing practices on their websites and end of year reports.
Best blog I've read in a while. So important, these are real lives when the people making our things face exploitation or forced labour. And it's real, I've seen those conditions in too many China and other factories too many times. They mean poverty, and the unfairness, when western brand execs earn millions (or $100,000s), do not build any respect for westerners,...so then suppliers cheat more,.. and then the brand gets "caught" in a "scandal",..that they caused.
Let's hope the loosening of the tariffs has helped a little, and I get the impression some Chinese suppliers are also looking to other markets.
Hi John what you haven't covered is a whole range of tax avoidance - sorry I mean "legal minimisation" methods available to multinational corporations such as transfer pricing. Instead of just shifting costs so profits miraculously appear in the British Virgin Islands or some such place you move costs so the item landed at US ports is as cheap as possible then bingo you have minimised you tariff!
I'm sure Trumps tariffs have been an absolute boon for the high paid lawyers and accountants in New York and London who do that sort of thing.
What I'm generally seeing is panic and poor decision making. Orders being pulled in, orders delayed, orders at factories reduced to zero. All push suppliers into the forced labor space. I'm not sure companies find themselves in an ethical dilemma because the consequences of these actions are not on their radar. It will be interesting to see how many will be claiming responsible sourcing practices on their websites and end of year reports.